Aldo Garbagnati:The UAE is a Steadfast Destination for the Wealthy the Wealthy
Investors' Destination Remains Unwavering: The UAE Responds with Numbers
While the sounds of missiles echoed across the region, the UAE's deal books were recording exceptional figures. Since the beginning of the war, Abu Dhabi has signed a $30 billion investment partnership between ADNOC and Al Emad Holding with BlackRock, Global Infrastructure Partners, and Temasek Holding in infrastructure projects.
The UAE's Taazeez signed agreements worth $29 billion with local and international companies to sell chemicals.
Across the Atlantic, Mubadala Energy announced its participation in the largest US liquefied natural gas project, valued at $13 billion. To the east, the UAE signed 24 agreements with China covering energy, technology, investment, and security, injected $5 billion in investments into India, and concluded four comprehensive economic partnership agreements with Ecuador, Japan, South Korea, and Azerbaijan.
Domestically, ADNOC announced a $55 billion investment plan over five years and completed 50 percent of the West-East 1 pipeline project to double oil exports via the port of Fujairah, bypassing the Strait of Hormuz. Meanwhile, Abu Dhabi is investing $17 billion in transportation, infrastructure, and entertainment projects, and Dubai is allocating $15 billion to expand its metro system and $5 billion to Emirates Airline. The approach is clear: progress, growth, and maintaining a balanced approach.
“Nothing has changed”... A passing shock and steadfast strategies. Garbagnati opens his analysis with a precise timeline, noting that “the situation was actually different before the war.” For the past twenty years, the region had been experiencing “a very prosperous period,” with families arriving and investment growing, especially with the Abu Dhabi pipeline, which generated “numerous investment and capital opportunities.” And then things changed because of the crisis with Iran.
A message of utmost confidence: No change in investment behavior
Then comes the most decisive statement from the CEO of Emicapital Group: "I would be more concerned if I saw a change in the strategies, behavior, and sentiment of operations, but this has not happened."
He reveals that "the latest indicators, especially in the real estate sector, show that, as far as we are concerned—and we know what is happening with individuals and major investors—they are recovering and appreciate the resilience and speed of the authorities' recovery and their handling of the crisis."
Two armies of investors: "Cryptocurrency money" and "Money" “The Old School”
Garbagnati distinguishes between two categories of wealthy individuals in how they are dealing with the current circumstances, explaining that “there is a difference between wealthy individuals. Someone who is 25 years old and has managed to amass a large fortune, for example, from cryptocurrencies, behaves differently in this situation than someone with “old school money.”
He adds that what he is currently observing is a state of waiting among some investors, without any change in strategies or confidence levels, noting that “the country still has confidence and still has what is called sufficient flexibility, which allows these funds to remain with high-net-worth individuals.”
Asset Investor vs. Lifestyle Investor
Garbagnati then points to the need to differentiate between different types of investors, explaining:
“We must distinguish here between investors who are only interested in investing in assets, whether real estate or cash, without moving from the country. They have a certain stance, and this has not changed because they are not here, they don’t live through their operations here, they like the investment environment, and they have been investing in the UAE concept for a long time.”
The second category, according to Garbagnati, consists of people who send their children to schools in the UAE and bring Their families reside there, and they also have family offices within the country. These individuals “have a different perspective than others.” In discussing the nature of this group’s aspirations, he explains that “the confidence they previously possessed was based on factors we are familiar with, such as lifestyle, investment opportunities, and, to some extent, tax compliance and tax behavior.”
Taxes are not the primary incentive… Security and lifestyle come first. In reviewing prevailing stereotypes, Garbagnati clarifies the true incentives for attracting investors, stating: “Tax policy is not the primary driver for investors coming here. They have been complying with tax regulations in various markets around the world for a long time.” What truly matters to them is security, a high standard of living, and promising investment opportunities.
Real estate continues its momentum... and a new $2.1 billion platform.
Garbagnati reveals a new project Emicapital Group is working on, saying, "We are working on a new platform that will be launched soon in Abu Dhabi. It is based on foreign direct investment of approximately $2.1 billion and focuses on the private sector."
He adds, "This project began a year ago, and we started it some time ago to ensure the necessary legislation was in place and that the platform met the required standards. We haven't stopped working on it." He affirms, "Our position at Emicapital remains unchanged."
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